Therefore, the market entry pricing strategy will be to charge below market practices, namely 15%-20% of expected base salary of future employee, market averages being around 20%-30%. Additionally, as a guarantee of high quality services, if the hired employee leaves its position within 90 days from the hiring date, the company will find a replacement at no extra cost for the client. Promotion strategy

The official launching will be organized at the Head Hunting Festival 2009, where the company will have a general presentation of the business concept and will distribute flyers and business cards to all participants.

To attract companies to participate in the initial research phase of the business concept, the Intellectual Vanity Fair will organize individual presentations to major players in the it market and distribute promotional materials to them.

Product strategy

The company will sell recruiting services with 90-days guarantee on the service.

Placement strategy

The fairs will be organized in large university cities to attract a large number of candidates and the headquarters will be in Sidney, Australia as this is a major business center.

VI. Proposed Company Offering

The main costs will be associated with personnel and promotional activities.

TABLE 2 - PERSONNEL EXPECTED COSTS

Position

No of employees

Average Monthly Salary ($)

No of months

Executive manager

Senior BA

Senior PR

Financial manager

Contract-based analysts

An additional monthly $5,000/monthly will be allocated to promotional activities and $4,000 to rent costs.

TABLE 3 - KEY FINANCIAL FIGURES

Key indicators

Expected costs

Expected sales

Gross profit

Reference List

Amble, Brian. "Recruitment & retention problems on the rise." Management...

Labour Force Australia. October 2008.
Bowden, Bob. Hiring costs being underestimated by Australian businesses. 14 March 2007.

HP Philanthropy and Education Annual Report. 2005.

A www.hp.com

Kandola, Rajvinder, Robert Wood, Bindi Dholakia and Caron Keane. The Graduate Recruitment Manual. Gower Publishing Company, 2001

Lencioni, Patrick. The Three Signs of a Miserable Job: A Fable for Managers (and their Employees). Jossey-Bass, 2007.

Microsoft Corporation. Microsoft Invests in Strategic Alliance with CareerBuilder. 09, 1999. http://www.microsoft.com/presspass/press/1999/may99/careerpr.mspx (accessed 10-17, 2008)

Midler, David. Downtown Business Recruitment. Lulu, 2005.

Thornton, Grant. International Business Report 2008 - Country Focus. 2008. http://www.grantthornton.com.au (Accessed Nov 2008).

Intellectual Vanity Fair

The Australian employment has had an upward trend in absolute values since 1998 until 2008, rising from 8,674,900 individuals in October 1998 to 10,752,800 in October 2008.

Substitutes

Internet job search engines.

Traditional recruitment companies, with already established client portfolios

Positive implications

Negative implications

Rivalry

Specialized recruiting companies focused on certain jobs

Major players in the industry

Buyers

Giant it companies interested in recruiting highly skilled personnel

Suppliers

Business analysts - to analyzed surveyed data

Candidates - to help build a strong candidate databased

Staff - since the company is small, the staff have a great impact on the company. If a person leaves, the impact is deep.

Entrants

Companies founded by former employees of existing HR companies with similar business concepts.